Title
Resolution to Approve the Sale of 1315 S. Seventh from Child and Family Services - Huron Service for Youth D/B/A HelpSource to Washtenaw Community Health Organization and to Approve the Assumption of a $50,000.00 HOME Mortgage, Note and Housing Affordability Agreement
Memorandum
On April 19, 2004, City Council approved an allocation of $50,000 in HOME funds (R-152-4-04) to Child and Family Services - Huron Service for Youth D/B/A HelpSource for the rehabilitation of 1315 S. Seventh to be used as a licensed group home for youth aged 11-17. HelpSource has closed its doors and must sell off its assets. The City’s Affordability Agreement with HelpSource states that the property cannot be transferred without the written consent of the City. In addition, the City has the right to purchase the property or choose another non-profit to purchase the property, after publicly advertising the sale. The Office of Community Development and HelpSource issued a Request for Proposal on July 20, 2007 and WCHO was the only bidder on this property.
WCHO is proposing to use 1315 S. Seventh for 24-hour intensive residential treatment for 6 individuals with severe developmental disabilities or mental illness. The City currently has four Affordability Agreements with WCHO for similar group homes. WCHO currently owns and rents group homes in a 4-county area. WCHO is moving toward owning properties instead of renting them, to lower long-term expenses. On September 5, 2007, the WCHO Board approved the purchase of this property with the following conditions; that the property is appropriately zoned, a group home license is received from the State of Michigan, and Board approval to terminate the lease agreement of the group home that 1315 S. Seventh will replace. Due to the urgent need to sell the group homes, which are currently empty, the Office of Community Development is requesting Council approval while these issues are being resolved.
The Office of Community Developmen...
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